Brazil fertilizer industry seeks subsidies as Iran war disrupts supplies, Mosaic says
MOS•Brazil fertilizer industry seeks subsidy program amid sulfur supply disruptions
Brazil's fertilizer industry is in talks with the federal government over a 2 billion-real ($388.56 million) subsidy program lasting three months to help suppliers maintain affordable fertilizer prices for farmers amid disruptions linked to the war in Iran, a Mosaic MOS.N executive told Reuters.
The proposed aid would focus on sulfur, whose global trade has been disrupted as around 60% of world output passes through the Strait of Hormuz, said Eduardo Monteiro, Mosaic's country manager for Brazil and Paraguay.
"We are seeking a subsidy from the government similar to what the oil sector received," Monteiro said, referring to past Brazilian measures to ease fuel prices after the oil shock related to the Middle East conflict.
Brazil, an agricultural powerhouse, imports about 90% of the fertilizers it consumes. Mosaic, a leading supplier, announced temporary production cuts and the idling of phosphate fertilizer plants in July due to sulfur supply constraints.
Monteiro said industry estimates point to Brazilian fertilizer demand falling this year to between 42 million and 45 million metric tons, from a record of around 49 million tons in 2025.
Brazilian fertilizer imports were down about 10% through July from a year earlier and have fallen roughly 50% so far in August, he said.
Monteiro said the issue is being discussed in a "situation room" involving the Agriculture, Finance and Mines and Energy ministries, as well as the presidential chief of staff's office, though no decision has been reached.
The executive said the industry has so far been able to cushion the impact of the conflict by drawing on inventories built before the war, but warned that supply constraints could worsen in the months ahead if disruptions persist.
Even if the war were to end immediately, it could take around 12 months for global supplies to normalize, he said, noting that other major suppliers - including China and Russia - are restricting exports amid current market conditions.
